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1. Company Snapshot

1.a. Company Description

Johnson Controls International plc, together with its subsidiaries, engages in engineering, manufacturing, commissioning, and retrofitting building products and systems in the United States, Europe, the Asia Pacific, and internationally.It operates in four segments: Building Solutions North America, Building Solutions EMEA/LA, Building Solutions Asia Pacific, and Global Products.The company designs, sells, installs, and services heating, ventilating, air conditioning, controls, building management, refrigeration, integrated electronic security, integrated fire detection and suppression systems, and fire protection and security products for commercial, industrial, retail, small business, institutional, and governmental customers; and provides energy efficiency solutions and technical services, including inspection, scheduled maintenance, and repair and replacement of mechanical and control systems, as well as data-driven smart building solutions to non-residential building and industrial applications.


It also offers controls software and software services for residential and commercial applications.Johnson Controls International plc was founded in 1885 and is headquartered in Cork, Ireland.

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1.b. Last Insights on JCI

Johnson Controls International plc's recent performance was driven by strong Q1 2026 earnings, with a 6% increase in organic revenue and a 190 basis point expansion in adjusted EBIT margin to 12.4%. The company's adjusted EPS increased nearly 40% to $0.89, exceeding expectations. Record orders, accelerating momentum in data centers and life sciences, and margin expansion contributed to the strong start to fiscal 2026. Management raised its full-year adjusted earnings guidance to $4.70, citing sustained AI data center demand and margin improvement. (Source: Johnson Controls International PLC Q1 2026 Earnings Call Highlights)

1.c. Company Highlights

2. Johnson Controls' Q1 2026 Earnings: A Strong Start to the Year

Johnson Controls International plc reported a robust Q1 2026, with revenue growth of 6%, adjusted EBIT margins expanding 190 basis points to 12.4%, and adjusted EPS surging nearly 40% to $0.89, surpassing guidance. The company's actual EPS of $0.89 beat estimates of $0.841. Orders increased by nearly 40% with broad-based strength across the enterprise, led by data center projects, resulting in a record backlog of $18 billion. This strong performance provides visibility and reinforces the demand environment, prompting the company to raise its full-year guidance.

Publication Date: Feb -05

📋 Highlights
  • Strong Q1 2026 Performance: Revenue grew 6%, adjusted EBIT margins expanded 190 bps to 12.4%, and adjusted EPS surged 40% to $0.89.
  • Record Backlog and Order Growth: Backlog reached $18 billion (up 20%), while orders jumped 40%, driven by data center, life sciences, and mission-critical projects.
  • Full-Year Guidance Raised: Adjusted EPS guidance lifted to $4.70 (25% growth), with organic sales growth projected at mid-single digits and operating leverage ~50%.
  • Data Center Market Expansion: Orders in data center verticals (chillers, CDUs, air handling units) saw robust growth, with 56% surge in Americas and expansion into next-gen designs.

Regional Growth and Order Intake

Regionally, orders grew 56% in the Americas, 8% in EMEA, and 10% in APAC, driven by data center projects and mission-critical solutions. The company's order entry was strong during the quarter, driven not only by data centers but also by life sciences, reflecting its efforts to build its pipeline and field coverage in mission-critical verticals. The data center market is growing in various parts of the world and applications, with Johnson Controls playing in multiple categories.

Backlog and Revenue Visibility

The company's backlog increased by 20%, reflecting orders shippable within the next 12 months. The organic growth guidance remains mid-single digits for the year, but the company expects growth to strengthen over time. With a strong backlog and pipeline of opportunities, Johnson Controls is well-positioned for future growth.

Operational Improvements and Margin Expansion

The company is focused on operational improvements, including footprint consolidation, manufacturing setup, and productivity in the field on the service side. It believes it can decouple growth from top-line growth and drive margin expansion, aiming to achieve segment EBIT margins similar to or better than its best-performing peers. The North America margin was slightly lighter due to a $15 million headwind, but the company expects it to improve in the second half.

Valuation and Growth Prospects

With a P/E Ratio of 24.05 and an EV/EBITDA of 25.56, the market is pricing in significant growth prospects for Johnson Controls. Analysts estimate next year's revenue growth at 5.6%. The company's ROIC of 11.13% and ROE of 23.52% indicate strong profitability. As the company continues to execute on its strategic priorities, including its proprietary business system and portfolio optimization, it is well-positioned to drive future growth and create shareholder value.

3. NewsRoom

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Johnson Controls International (NYSE:JCI) VP Daniel Mcconeghy Sells 3,600 Shares of Stock

Feb -24

Source: defenseworld.net

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Johnson Controls International plc $JCI Shares Sold by Dana Investment Advisors Inc.

Feb -24

Source: defenseworld.net

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Johnson Controls International: Demand Strength Sustains Earnings Momentum

Feb -23

Source: seekingalpha.com

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Lansforsakringar Fondforvaltning AB publ Raises Holdings in Johnson Controls International plc $JCI

Feb -23

Source: defenseworld.net

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Johnson Controls International plc $JCI Shares Sold by Citigroup Inc.

Feb -22

Source: defenseworld.net

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Assetmark Inc. Reduces Holdings in Johnson Controls International plc $JCI

Feb -20

Source: defenseworld.net

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Traders Buy High Volume of Johnson Controls International Call Options (NYSE:JCI)

Feb -20

Source: defenseworld.net

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Johnson Controls International plc (JCI) Presents at Barclays 43rd Annual Industrial Select Conference Transcript

Feb -19

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.23%)

6. Segments

Building Solutions North America

Expected Growth: 4.5%

Growing demand for energy-efficient HVAC systems, increasing adoption of smart buildings, and rising need for fire and security systems drive growth in North America.

Global Products

Expected Growth: 4.5%

Increasing demand for energy-efficient HVAC systems, growing need for building automation and control systems, and rising adoption of smart buildings drive growth in Johnson Controls’ Global Products segment.

Building Solutions EMEA / LA

Expected Growth: 6.5%

Increasing adoption of energy-efficient solutions, stringent regulations, and growing demand for building management systems drive growth in Europe, Middle East, and Africa, supported by Johnson Controls International plc’s strong market presence.

Building Solutions Asia Pacific

Expected Growth: 8.1%

Growing demand for energy-efficient solutions, increasing adoption of building automation systems, and government initiatives promoting sustainable infrastructure development in the Asia Pacific region drive the segment's growth for Johnson Controls' HVAC, building automation, and energy efficiency solutions.

7. Detailed Products

HVAC Equipment

Johnson Controls offers a wide range of heating, ventilation, and air conditioning (HVAC) equipment, including air handlers, chillers, condensing units, and rooftop units.

Building Automation Systems

Johnson Controls' building automation systems integrate various building systems, such as HVAC, lighting, and security, to optimize energy efficiency and building performance.

Fire Detection and Suppression Systems

Johnson Controls offers a range of fire detection and suppression systems, including smoke detectors, fire alarms, and sprinkler systems.

Security Systems

Johnson Controls' security systems include access control, video surveillance, and intrusion detection systems.

Energy Storage Systems

Johnson Controls offers energy storage systems, including batteries and inverters, to optimize energy efficiency and reduce energy costs.

Industrial Refrigeration Systems

Johnson Controls' industrial refrigeration systems are used in cold storage facilities, supermarkets, and industrial processes.

Retail Solutions

Johnson Controls offers a range of retail solutions, including refrigeration systems, HVAC systems, and energy management systems.

8. Johnson Controls International plc's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Johnson Controls International plc is moderate due to the availability of alternative products and services in the market.

Bargaining Power Of Customers

The bargaining power of customers for Johnson Controls International plc is low due to the company's strong brand reputation and diversified product offerings.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Johnson Controls International plc is moderate due to the company's dependence on a few key suppliers for certain components.

Threat Of New Entrants

The threat of new entrants for Johnson Controls International plc is low due to the high barriers to entry in the industry, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry for Johnson Controls International plc is high due to the competitive nature of the industry, with several established players vying for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 34.84%
Debt Cost 3.95%
Equity Weight 65.16%
Equity Cost 10.18%
WACC 8.00%
Leverage 53.48%

11. Quality Control: Johnson Controls International plc passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
ASSA ABLOY

A-Score: 5.4/10

Value: 2.4

Growth: 6.9

Quality: 6.5

Yield: 2.5

Momentum: 5.0

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
Geberit

A-Score: 4.9/10

Value: 0.9

Growth: 3.6

Quality: 7.2

Yield: 1.9

Momentum: 6.5

Volatility: 9.3

1-Year Total Return ->

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Stock-Card
Trane Technologies

A-Score: 4.9/10

Value: 1.3

Growth: 7.3

Quality: 7.4

Yield: 2.5

Momentum: 4.0

Volatility: 6.7

1-Year Total Return ->

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Stock-Card
Saint-Gobain

A-Score: 4.8/10

Value: 4.7

Growth: 5.8

Quality: 4.5

Yield: 4.4

Momentum: 4.0

Volatility: 5.3

1-Year Total Return ->

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Stock-Card
Johnson Controls

A-Score: 4.6/10

Value: 0.8

Growth: 3.4

Quality: 5.2

Yield: 3.8

Momentum: 8.0

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
Ferguson

A-Score: 3.9/10

Value: 2.4

Growth: 6.2

Quality: 5.8

Yield: 3.1

Momentum: 0.0

Volatility: 6.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

145.46$

Current Price

145.46$

Potential

-0.00%

Expected Cash-Flows